Expanding Operations
from Germany to Mexico
The business case underscores the strategic benefits of expanding into new markets, highlighting the company’s successful establishment of a new facility abroad. By partnering with PRODENSA, the company efficiently navigated local regulatory challenges, ensuring a rapid and risk-mitigated setup.
Overview
A globally renowned leader in the electronic devices industry, headquartered in Germany, embarked on a strategic initiative to expand its operations in Mexico. Known for its innovative solutions and commitment to excellence, the company invested 50 million EUR in establishing a cutting‑edge, 7,000 square feet facility in Aguascalientes, Mexico.
Main Challenge
The primary challenge for the CLIENT was to streamline the establishment of the new facility. This involved navigating through various regulatory requirements, paperwork, and construction phases. The CEO highlighted the importance of this expansion to enhance global supply chain stability, reduce lead times, and advance sustainability efforts.
Service Scope
To tackle these challenges, the CLIENT partnered with PRODENSA as their strategic co‑pilot. PRODENSA developed a customized solution, providing comprehensive project management services that covered all aspects of the project. This included:
- Initial Planning
- Building Construction
- Human Resources
- Payroll
- Environment, Health, and Safety (EHS)
- International Trade Compliance
PRODENSA’s goal was to define the fastest and lowest‑risk route to launch a new facility in Mexico, minimizing time and errors throughout the planning process.
Outcome
The collaboration between the CLIENT and PRODENSA led to the establishment of the facility in record time. Within just one year, the construction of the 7,000 square feet plant was completed, and the facility started operating. This success was attributed to the strategic decision to leverage PRODENSA’s deep knowledge and expertise in doing business in Mexico.
This case exemplifies how collaboration with a knowledgeable local partner can accelerate expansion and support in overcoming challenges and achieving exceptional results in the global marketplace.
